U.S. Interior Secretary Ken Salazar suggested Friday that Detroit can become a laboratory for urban revitalization through the assistance of federal historic preservation tax credits.

Salazar visited Detroit on Friday with U.S. Sen. Carl Levin to gather input at a meeting on the Federal Historic Preservation Tax Incentives Program with state officials and locals economic development leaders at The Oddfellows Building at 8701 W. Vernor.

The Oddfellows Building is one building renovated by the Southwest Detroit Business Association with the help of the tax credits.

"I remember often talking about Detroit (with Levin) and seeing that Detroit as a city that had been a city in a decline," Salazar said. "Yet today, driving around with Senator Levin, you see the sparks of a city coming back. And the Historic Preservation Program is one of the cornerstones of making sure that this historic preservation effort succeeds here."

Numerous developers, including Quicken Loans Inc. chairman and founder Dan Gilbert, in attendance have taken advantage of the federal historic preservation tax incentive to help finance restoration projects, many of which are located in downtown and Midtown.

Salazar made comments alongside Levin in front of about 75 people inside the Oddfellows Building Great Floor before taking questions and comments from developers.

About 97 percent of projects that apply for the historic preservation tax credit are approved without any kind of appeal, Salazar said.

But more than a half-dozen members of the audience mentioned the credit is difficult to use for a number of reasons.

Salazar said he ordered a 30-day review of the program, which is to be completed by March 1.

One issue a couple of developers mentioned was the inability to bundle different tax credits.

Detroit-developer Ernest Zachary said he had a project in which he couldn't take a tax credit for installing energy-saving solar panels along with the historic preservation tax credit.

It would help if the credits were not mutually exclusive, Zachary said.

Levin asked if it was an issue with IRS regulations or a legislative concern, but it couldn't be clarified. Salazar said he would look into it.

Elisabeth Knibbe of Quinn Evan Architects of Ann Arbor, also the architect behind the Oddfellows Building rehabilitation project, cited the program's inflexibility for smaller entities seeking to use the tax credit.

"The way the law is written right now, most of us can't use those credits," she said, citing requirements such as keeping interior and exterior structures intact. "The ability for more of us to actually use those credits would make it a lot easier for us to do certain projects. …

"I don't think they need to change the standards, just a tweak in interpretation, to allow greater flexibility."

Regardless of the bureaucratic concerns that were addressed, the majority of the audience responded with positive remarks about the program and how much it has helped spur redevelopment in Detroit.

"Without the national tax credits, many of the (historic) buildings would not be standing," said Janese Chapman of Detroit's Historic Designation Advisory Board.

Chapman said she thought it would be beneficial to have the guidelines for the federal historic preservation credit to be understood by the "average Joe."

Joel Landy, president of the Cass Avenue Development, was positive after the intimate townhall style event.

"I was very encouraged," Landy said. "(The meeting) was very good because it put us in a lot closer contact" with higher ranking officials.

Since 2000, 70 Detroit projects have been funded at least in part through the Federal Historic Preservation Tax Incentives Program. Those projects represent $696 million in investment, according to Laura Rose Ashlee, historian and communications liaison for the State Historic Preservation Office, which is a part of the Michigan State Housing Development Authority.

The Federal Historic Preservation Tax Incentives Program is administered by the National Park Service and the Internal Revenue Service and works in partnership with state Historic Preservation Offices.

Salazar said the historic preservation tax credit has been used in more than 39,000 historic building renovation projects across the country, which attributes for over $66 billion in private investment.

He added that those projects have aided in the creation of more than 2.2 million jobs since the program was first implemented.